Morton Manufacturing allocates factory overhead using one cost pool with direct labor hours as the allocation base. Morton has two production departments, P1 and P2. The new accountant at Morton estimates that next year, the total factory overhead costs will be $40,000,000, and approximately 500,000 direct labor hours will be worked. The accountant also estimates that P1 will use 100,000 direct labor hours, and there will be about $30,000,000 in overhead costs in P1. P2 will use 400,000 direct labor hours, and there will be $10,000,000 in overhead costs in P2. Morton has two products, A1 and B1. It takes 6 direct labor hours in P1 and 4 direct labor hours in P2 to complete one unit of A1. It takes 1 direct labor hour in P1 and 9 direct labor hours in P2 to complete one unit of B1.

Allocate overhead to each product using the following: (Round answers to 2 decimal places, e.g. 15.25.)

	One-cost-pool system	Separate overhead cost pool for each department
A1	$ ________________ per unit	$ ________________ per unit
B1	$ ________________ per unit	$ ________________ per unit

Which product will be undercosted and which will be overcosted with the one-cost-pool system?